Senate Panel Gives HHS Nominees Warm Reception

Democratic senators receive assurances about upholding the ACA

WASHINGTON -- Nominees for two positions at the Department of Health and Human Services (HHS) got a generally warm reception from the Senate Finance Committee on Thursday, although several Democratic senators extracted pledges that the nominees would help uphold the Affordable Care Act (ACA).

"The ACA is the law of the land; it is the administration's job to faithfully execute that law, and it's going to be your job to be the honest cop on the beat, so if the president, the [HHS] secretary, or anybody else wants to take steps that in your view are inconsistent with the letter or spirit of the law, it is your job to tell them so," Sen. Ron Wyden (D-Ore.), the committee's ranking member, said to Robert Charrow, the nominee to be the HHS General Counsel. "Will you do that?"

"Yes, I will," Charrow responded.

In his opening statement, Wyden noted, "The administration is taking taxpayer dollars that are intended to help get individuals and families signed up for health coverage, and it's using those funds to stifle enrollment. That means more people are living without access to the care they need."

Committee Democrats also used the opportunity to call attention to problems they were having getting information from various HHS agencies. "There is a report that the administration has provided a list of regulations that HHS plans to roll back or repeal in a letter to congressional Republicans," said Sen. Robert Casey Jr. (D-Pa.). "I've sent two letters since April requesting this document from HHS, my staff has had multiple conversations with HHS staff, and yet the document has not been produced. There's no legal basis for that, and I don't know why the administration or the department wouldn't provide that."

"I appreciate those concerns and will fully cooperate and work with staff to give accurate and timely responses," responded Matthew Bassett, the nominee for assistant HHS secretary, whose job would be to serve as a liaison between Congress and HHS. "I'm sorry that's been your experience to date."

Sen. Maria Cantwell (D-Wash.) asked Charrow if he would "follow the law of the land and continue to administer the Basic Health Plan," an ACA provision that allows states to provide health insurance coverage for patients whose incomes fluctuate above and below Medicaid cutoff levels. "This is bringing about great success in driving down the cost of healthcare in states that have implemented it ... and it's very cost-effective in delivering healthcare for consumers."

Charrow said that he would agree to Cantwell's request.

On the other side of the dais, Sen. Chuck Grassley (R-Iowa) praised the False Claims Act (FCA), calling it "the most cost-effective anti-fraud tool that we have ... We have collected $53 billion in money lost to fraud." He noted that Charrow had represented defendants in FCA cases.

"That's not a problem, but I want to make sure you can be objective about it. Do you have any bias against the False Claims Act that would affect your advice to HHS ... on efforts to combat fraud against government healthcare programs?" Grassley asked Charrow.

"I have also represented a plaintiff in an FCA case, and I have no bias," said Charrow; his response seemed to satisfy Grassley.

Committee chairman Orrin Hatch (R-Utah) noted that the backlog of Medicare claims appeals "is already unacceptably high ... as the senior population continues to grow, this problem is likely to get worse."

Bassett agreed that "the backlog is far too long. I know this is a priority of the secretary ... I would very much look forward to working with you, your staff, and all members to come up with innovative ways to shorten the [backlog]."

Sen. Robert Menendez (D-N.J.) asked the other nominee at the hearing -- Gilbert Kaplan, who is being considered for the post of Under Secretary of Commerce for International Trade -- what he would do if confirmed to protect U.S. intellectual property abroad, including innovations made by biopharmaceutical firms.

"We have intellectual property attachés as part of the Foreign Service, and they can push on this issue in the countries where they're located," said Kaplan. "I also intend to work closely with [the Patent and Trademark Office] to develop international strategies, and I think it's time to dust off Section 301, which is a very important trade law that has intellectual property language in it, and we can use that approach to make sure our pharmaceutical companies are protected."

By the hearing's end, it appeared that all the nominees were on the path to confirmation. "You all bring substantial qualifications ... it's my intent to work with my colleagues to advance consideration of your nominations," said Wyden, who was filling in temporarily for Hatch, before gaveling the hearing to a close.

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